Let’s say you’re renting out a house or a bunch of houses. That’s what my dad did years ago,when he retired at 49. Yep, that’s right. Age 49. Long before tech showed up.
If I recall, I think the company he worked for had a professional (like a job therapist) come in to teach the management how to work more effectively. Well, that sure backfired (for the company).
After figuring out that his portion of the shares he owned could be cashed in, enabling the other shareholders to buy him out, he realized he didn’t need to commute to LA from Newport Beach, anymore.
The broker/agent he started working with, would look for houses close by but in a different neighborhood/city. In his case, the commute was minimal getting to Costa Mesa from Newport Beach. No freeways, hardly any accidents. My folks would buy them, and my dad would fix them up a bit and rent them out. And he was his own property manager. Sure, he would hire contractors, but most property managers do!
This was long-term fixing (rather than short term flipping) and well before it became TV- fashionable, and definitely decades before the financial fiasco.
These days, very few of us can afford to buy locally, more than one property to rent out. But if you don’t want to manage a property, here are some questions that you need to ask when interviewing for a property manager.
-Who is on your staff? You want all of the names….
-Who works on the weekends?
-What happens if the tenant calls about an issue and there is nobody picking up the phone? What happens if the call goes into voice mail?
-What happens if an ‘event’ takes place during ‘after hours’? (like an earthquake, a fire, a pipe blowing up).
-How do you communicate with the tenant and/or me? via cell, texting, em?
-What’s your normal response time?
-How do you bill?
-What is the monthly price you charge?
-What if there are no calls from the tenant that month?
-Do you take money up front from me…(to cover emergencies or to have on deposit?)
-How much do you charge for multiple units in one building? How about single family homes?
And on and on….then compare the answers. Be sure to write each answer down while they’re present. That way you’ve got a record of what they said.
Because a friend (and client) asked me about property management, I sent those questions to her. She became a became a landlord, unintentionally. She’s now retired..and she doesn’t want a new job as a ‘property manager.’ She wants a life!
Most everything is a balancing act. What you mostly want is peace of mind and restful nights. But you need to stay on top of things…otherwise, items can go south quickly.
Alameda Real Estate this Week
I’m working on various concepts to get this info out to you. These days the info is so quickly available all over the world. My thought, for now, is to come up with some ‘for real’ stories once I think of them and remember them. Any ideas?
You may be interested in my ‘for fun’ blog – Boomer-Chick-Musings check it out!